Can a business refuse cash in Kentucky?

As it stands today, Kentucky has no undisputed law that unquestionably compels all of its private trade to transact in all face-to-face dealings with the use of cash. In other words, a business may refuse cash in Kentucky without clearly violating state law, at least for now. Several legal resources and consumer protection Q&As suggest that a business refusing cash in Kentucky is currently not acting unlawfully, since no fully enacted statute mandates otherwise.

But it might be amended by future legislation:

• Senate Bill 306 of 2024 works to forbid businesses and agencies from requiring credit/debit card payments or refusing to take cash when making face‑to‑face sales. It would be illegal for such a business in the state of Kentucky to refuse to take in cash when paid in person by someone.

• An older similar piece of law, SB 257, was submitted that similarly sought to prevent businesses from denying currency or requiring non‑cash settlement during in‑person dealings. That shows that there is interest in making it statutory for businesses in the state of Kentucky to accept currency.

Legal Compliance Considerations for Cash Refusal in Kentucky

For the moment, unless at least one of these bills is passed into law, it will be up to businesses in Kentucky to opt against taking in cash in specific situations. But after the law is passed, declining to take cash in person could become punishable by law.

If you require help to guarantee that a particular locality has already passed laws of this type, or that your company will be in compliance with changes to the regulations, One IBC USAcan aid in legal compliance, policy writing, and keeping up to date with changes to state legislatures.